INTERNAL USE ONLY

IAG RESULTS
QUARTER ONE 2022
6 May 2022
 INTERNAL USE ONLY

HIGHLIGHTS
LUIS GALLEGO, CHIEF EXECUTIVE OFFICER
 1Q 2022 FINANCIAL HIGHLIGHTS

Capacity recovery as expected and strong forward bookings

• Continued recovery in capacity (65% of 2019 levels in 1Q 2022 vs. 58% in 4Q 2021) in line with guidance
• 1Q 2022 operating loss pre-exceptional of €0.75bn reflecting:
• Normal seasonality
• The impact of Omicron on bookings for travel in January and February
• Ramp-up costs to enable a fuller schedule by 3Q 2022
• Iberia, IAG Cargo and IAG Loyalty continued to outperform

• Strong liquidity of €12.4 billion at end March (vs. €12.0bn at the end of 2021), supported by strong booking activity
boosting deferred revenue
• Net debt flat at €11.6bn at end March 2022 vs. €11.7bn at the end of 2021

3
 OUTLOOK FY 2022

Increasing demand driving positive operating profit from 2Q despite higher fuel prices
• Forward bookings have been running at a rate of c.90% of 2019 levels in March and April
• Flown capacity of 69% in March, growing to c.77% in April
• Premium leisure continues to be strong
• Demand on North Atlantic routes continues to recover

• FY 2022 capacity now planned to be c.80% of 2019 levels:

• Slightly moderated to enable operational resilience at Heathrow (mainly British Airways shorthaul)
• 2Q capacity to be c.80% of 2019 levels and 3Q capacity to be c.85% of 2019 levels
• North Atlantic network restoration for the Group in 3Q with capacity close to 2019 levels (95%)

• We expect to make an operating profit from 2Q onwards and for FY 2022

• Net cash flows from operating activities to be significantly positive

4
 INTERNAL USE ONLY

FINANCIAL RESULTS
NICHOLAS CADBURY, CHIEF FINANCIAL OFFICER
 1Q 2022 FINANCIAL HIGHLIGHTS

Demand returning and liquidity remains very strong

1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22

71.5% 72.2%
69.1% -12.8pts -8.5pts
-18.6pts -0.31
-0.49
RPK, ASK 51.8% -34.9% Pre-exceptional -0.75
-33.2pts -41.7% -41.8%
Load Factor 45.8%
-34.9pts -50.5%
operating result -1.05
-56.6% -1.14
(vs 2019) (€bn)
-65.8%
-80.4% -78.1%
-88.9% -86.7%

RPKs ASKs Load Factor

Gross debt Facilities

Net debt Cash 12.4
12.0
19.8
19.6
4.0 4.2
Debt Liquidity*
(€bn) (€bn)
11.7 11.6
7.9 8.2

Dec 2021 Mar 2022 Dec 2021 Mar-22

* Liquidity includes committed and undrawn general and aircraft financing facilities; 31 December 2021 cash of €7,943m and facilities of €4,043m

6
 1 Q 2 0 2 2 P R E - E X C E P T I O N A L O P E R AT I N G R E S U LT

1Q loss driven by normal seasonality, the impact of Omicron and ramp-up costs

1Q 2022 1Q 2021 vly 1Q 2019 v19

Passenger revenue 2,655 454 +485% 4,623 -43%
Cargo revenue 432 350 +23% 275 +57%
Other revenue 348 159 +119% 397 -12%
Total revenue 3,435 963 +257% 5,295 -35%
Employee costs 1,045 631 +66% 1,213 -14%
Fuel, oil costs and emissions charges 918 288 +219% 1,366 -33%
Supplier costs 1,695 718 +136% 2,075 -18%
Depreciation, amortisation and impairment 531 470 +13% 515 +3%
Total expenditure on operations 4,189 2,107 +99% 5,169 -19%
Pre-exceptional operating result -754 -1,144 +390 126 -880
Exceptional items 23 67 -66% nm nm
Post-exceptional operating result -731 -1,077 +346 126 -857

ASKs 49,080 14,796 +232% 75,423 -35%

Note: 2019 and 2020 employee cost figures have been restated for pensions accounting policy change

7
 1 Q 2 0 2 2 F I N A N C I A L P E R F O R M A N C E AT A I R L I N E L E V E L

Iberia and cargo continued to outperform, other airlines recovering as expected

1Q 2022 (€m) v19 1Q 2022 (£m) v19 1Q 2022 (€m) v19 1Q 2022 (€m) v19

Passenger revenue 167 -52% 1,282 -52% 641 -23% 259 -30%

Cargo revenue 19 +46% 286 +63% 89 +27% - -

Other revenue 3 -25% 138 +3% 183 -37% 2 -50%

Total revenue 189 -48% 1,706 -42% 913 -23% 261 -31%

Total expenditure on operations 299 -25% 2,136 -22% 1,002 -17% 360 -18%

Pre-exceptional operating result -110 -76 -430 -649 -89 -65 -99 -34

Pre-exceptional operating margin -58% -49pts -25% -32pts -10% -8pts -38% -21pts

ASK (m) 4,006 -31% 25,157 -43% 13,909 -15% 5,427 -27%

RPK (m) 2,275 -47% 17,903 -49% 10,580 -24% 4,191 -33%

Load factor (%) 57% -16pts 71% -8pts 76% -9pts 77% -7pts

Sector length (km) 1,930 +3% 3,304 +2% 2,600 -7% 1,030 +9%

Note: 2019 and 2020 employee cost figures have been restated for pensions accounting policy change

8
 LIQUIDITY

Highest liquidity since the start of the pandemic with further actions in 2Q 2022
9 Liquidity position Liquidity and financing actions

Cash + Facilities* (% of 2019 revenue)

1Q 2022
36% 32% 47% 49%
• €200m ISIF facility agreed by Aer Lingus
€12.0bn* €12.4bn
• 1 A350 sale and lease back for Iberia
€9.1bn 4.2
€8.1bn 4.0
• 1 A350 EETC for British Airways
2.4
2.2
2Q 2022
7.9 8.2
6.7 5.9 • 5 aircraft (2 A350s, 3 A320neos) delivered
to Iberia in 1Q and financed in 2Q by
31 Dec 19 31 Dec 20 31 Dec 21 31 Mar 22 $461m sustainability-linked EETC

Undrawn general and committed aircraft finance facilities • 2 A350s delivered to British Airways in 1Q
Cash, cash equivalents, interest bearing deposits to be financed

* Note: 31 December 2021 cash of €7,943m and facilities of €4,043m

9
 DEBT POSITION

Net debt flat

Net debt

€m 31 Dec 2019 31 Dec 2020 31 Dec 2021 31 Mar 2022

Gross debt 14,254 15,679 19,610 19,777

Bank and other loans 1,954 3,369 7,485 7,425

Asset finance and lease liabilities 12,300 12,310 12,125 12,352

Cash, cash equivalents and interest-bearing deposits 6,683 5,917 7,943 8,184

Net debt* 7,571 9,762 11,667 11,593

* Note: Net debt quarter on quarter increase includes non-cash movements of: €380m at 31 Mar in 1Q 2022

10
 FUEL HEDGING

Fuel hedging - currently 78% in 2Q 2022, c.65% for 2H 2022 and c.25% for FY 2023

Fuel hedging

2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023

Jet fuel price scenario $1,350/mt $1,200/mt $1,050/mt $1,000/mt $950/mt $900/mt

$/€ scenario 1.05 1.05 1.05 1.05 1.05 1.05

Hedge ratio 78% 75% 53% 36% 26% 19%

Effective blended price post fuel and FX hedging* $905/mt $915/mt $880/mt $915/mt $910/mt $870/mt

* Note: Effective blended price excluding into plane cost

11
 INTERNAL USE ONLY

CEO UPDATE &

OUTLOOK
LUIS GALLEGO, CHIEF EXECUTIVE OFFICER
 W E E K LY N E W PA S S E N G E R B O O K I N G I N TA K E S

Forward bookings continue to strengthen at c.90% of 2019 levels

Spain domestic International shorthaul Longhaul

vs. 2019 (3 Jan 2021 – 1 May 2022) vs. 2019 (3 Jan 2021 – 1 May 2022) vs. 2019 (3 Jan 2021 – 1 May 2022)
20 Feb
160% 160% 160%
90%

140% 140%
20 Feb 80%
140%
20 Feb

70%
120% 120% 120%

60%
100% 100% 100%
50%
80% 80% 80%
40%
60% 60% 60%
30%

40% 40% 40%

20%

20% 20% 20%

10%

0% 0% 0%
0%
2021 2022 2021 2022 2021 2022

Note: 20 February 2022 was the date used for the data in FY 2021 results presentation on 25 February 2022

13
 IAG NORTH AMERICA BOOKINGS

Sales in North America developing positively despite testing requirements and war in Ukraine
Announcement of border opening
to fully vaccinated air travellers
(non-residents)

Average of 84% since Average of 85% since

North America travel region bookings 24 February 2022 North America point of sale bookings 24 February 2022

% of 2019 (3 Jan 2021 – 1 May 2022) % of 2019 (3 Jan 2021 – 1 May 2022)

100% US 100% US

EU UK
80% 80% EU UK

60% 60%

40% War in 40%

Ukraine start
War in
20% 20% Ukraine start

0% 0%
2021 2022 2021 2022

Note: North America includes United States, Canada and Mexico

Note: Announcement of border opening to fully vaccinated air travellers (non-residents) on 21 May 2021 (EU), 28 July 2021 (UK), 21 September 2021 (US)

14
 PREMIUM REVENUE PERFORMANCE

Strong business travel recovery and premium leisure continues to outperform

% of 2019
Premium leisure and business revenue vs 2019 % of 2019
Premium leisure and business revenue vs 2019
120% 120%
100% 100%
80% 80%
60% 60%
40% 40%
20% 20%
0% 0%

Nov-21
May-20

Sep-20

Nov-20

Mar-21
Oct-20

Jan-21

May-21

Sep-21

Mar-22
Oct-21

Jan-22
Jul-20

Jul-21
Aug-21
Aug-20
Apr-20

Jun-20

Apr-21

Jun-21

Feb-22
Feb-21
Dec-20

Dec-21

Apr-20
May-20

Oct-20
Nov-20

Oct-21
Sep-20

Mar-21
Apr-21
May-21

Nov-21

Mar-22
Jan-21

Sep-21

Jan-22
Jul-20

Jul-21
Aug-20

Aug-21
Jun-20

Jun-21
Dec-20

Feb-21

Dec-21

Feb-22
Premium Leisure Premium Business Premium Leisure Premium Business

% of 2019 Premium leisure by region % of 2019 Premium leisure by region

140% 140%
120% 120%
100% 100%
80% 80%
60% 60%
40%
40%
20%
20%
0%
0%
Mar-21

Sep-21
May-20

Sep-20
Oct-20

Jan-21

May-21

Oct-21

Jan-22

Mar-22
Jul-20

Nov-20

Jul-21

Nov-21
Aug-20

Aug-21
Apr-20

Jun-20

Apr-21

Jun-21
Feb-21

Feb-22
Dec-20

Dec-21

May-20

Sep-20
Oct-20

Jan-21

Mar-21

May-21

Sep-21
Oct-21

Jan-22

Mar-22
Jul-20

Jul-21
Aug-20

Aug-21
Apr-20

Jun-20

Nov-20

Apr-21

Jun-21

Nov-21
Feb-21

Feb-22
Dec-20

Dec-21
Caribbean AMESA Europe North America Asia Pacific Spain Domestic Europe North America South America AMESA

Note: AMESA includes Africa, Middle East and South Asia Note: Premium refers to First and Business class cabins only.

15
 B R I T I S H A I R WAY S O P E R AT I O N A L P E R F O R M A N C E

British Airways operational challenge due to COVID, resourcing issues, airport constraints and IT

• Increased absence due to surge in COVID infections • Complex and onerous referencing process
People

(absence currently c.7% vs. historical 4% - 5%)
Resourcing • High interest in cabin crew vacancies but tight
Referencing
recruitment market for ground operations roles
• Increased regulatory demands vs. pre-COVID
• Average reference process time increased c.20% to
103 days

• T4 closed until mid-June, creating a squeeze on T5

constraints

• Almost every country still requires additional

•
capacity

25% fewer check-in desks available to BA

Airport

Terminal COVID document checks by airlines

• Baggage, logistics and loading teams have less
capacity access to the infrastructure they need checks • Higher demand for airport check-in desks and longer
transaction times
• Insufficient security and Border Force staff

IT instability •
IT

Selected data centre and network issues

16
 B R I T I S H A I R WAY S O P E R AT I O N A L P E R F O R M A N C E

Building operational resilience at Heathrow

Short term Long term

• Special task force created to focus on current issues • Management changes:
• Splitting Operations structure into Technical and Operations
• Schedule:
• Process:
• Vast majority of planned schedule reductions focused on high
frequency shorthaul routes • Transforming operations leveraging Group’s best practices
• Use of Group and partner capacity support (e.g. American Airlines, • Supported by improved planning software
Finnair, Iberia Express) • Data transformation within Operations to drive better decision
• Resourcing: making

• 1,600 recruits with 3,100 in referencing • IT:

• Additional head office employees redeployed to recruitment • Accelerate replacement of legacy IT systems
• Temporary cabin crew sourced from Spain • IT a core pillar of BA transformation programme
• Speeding up referencing (increased automation, new portal, change in
government regulation)

• Airport:
• Doubled number of self service bag drops and improved T5 layout
• Employees awaiting referencing checks assigned to other operational
tasks (e.g. cabin crew assisting passengers in the terminal)

17
 F Y 2 0 2 2 C A PA C I T Y G R O W T H

FY 2022 capacity planned to be c.80% of 2019

Absolute ASKs (million) in 2022 and % proportion of 2019 ASKs

ASKs
2Q 2022 FY 2022 90,000
% of 2019 85%
90%
80,000
80%
87% 88% 70,000

60,000
65%
70% 74%
50,000

40,000
87% 86%
30,000

20,000
63% 52%
10,000

102% 100% -
Q1 Q2 Q3 Q4

Note: British Airways includes BA CityFlyer; Iberia includes Iberia Express; LEVEL includes Spain, France and Austria. LEVEL France and Austria operations were closed in 2021.

18
 CONCLUSIONS

Strong demand driving profitability from 2Q 2022

• Strong leisure demand in longhaul and shorthaul

• Business travel demand continues to improve
• North Atlantic network restoration for the Group in 3Q 2022 to 95% of 2019 capacity
• British Airways focused on improving operational resilience and customer service
• IAG expects operating result to be profitable from 2Q onwards and in FY 2022
• Net cash flows from operating activities to be significantly positive in FY 2022
• Highest liquidity since the start of the pandemic

19
 INTERNAL USE ONLY

APPENDICES
R E C O N C I L I AT I O N B E T W E E N P R E - E X C E P T I O N A L O P E R AT I N G R E S U LT A N D P O S T - E X C E P T I O N A L
R E S U LT A F T E R TA X

Loss after tax and exceptional items of c.€0.8bn in 1Q 2022

€m 1Q 2022 1Q 2021
Operating result (pre exceptional) -754 -1,144

Exceptional items 23 67

Operating result (post exceptional) -731 -1,077

Net finance costs -172 -174

Net financing (charge)/credit relating to pensions 7 1

Net currency retranslation (charges)/credits -61 -13

Other non-operating credits/ (charges) 41 40

Result before tax (post exceptional) -916 -1,223

Tax 129 149

Result after tax (post exceptional) -787 -1,074

21
 Quarter
Group performance
1Q 2022 1Q 2021 vLY 1Q 2019 v19

Passengers carried ('000s) 14,377 2,612 +450.4% 24,382 -41.0%

Domestic (UK & Spain) 4,445 1,256 +253.9% 5,921 -24.9%
Europe 6,422 667 +862.8% 12,406 -48.2%
GROUP PERFORMANCE North America 1,298 115 +1028.7% 2,482 -47.7%
Latin America & Caribbean 1,279 301 +324.9% 1,475 -13.3%
1Q 2022 traffic Africa & Middle East 910 260 +250.0% 1,521 -40.2%
and capacity statistics Asia & Pacific 23 13 +76.9% 577 -96.0%

Revenue passenger km (m) 35,432 6,779 +422.7% 60,878 -41.8%

vLY and vs 2019 Domestic (UK & Spain) 3,598 1,117 +222.1% 4,331 -16.9%
Europe 7,604 810 +838.8% 13,551 -43.9%
North America 8,628 746 +1056.6% 16,550 -47.9%
Latin America & Caribbean 10,137 2,510 +303.9% 12,182 -16.8%
Africa & Middle East 5,242 1,473 +255.9% 8,719 -39.9%
Asia & Pacific 223 123 +81.3% 5,545 -96.0%

Available seat km (m) 49,080 14,796 +231.7% 75,423 -34.9%

Domestic (UK & Spain) 4,648 1,797 +158.7% 5,161 -9.9%
Europe 10,802 1,469 +635.3% 17,074 -36.7%
North America 13,407 3,746 +257.9% 21,428 -37.4%
Latin America & Caribbean 12,946 4,924 +162.9% 14,359 -9.8%
Africa & Middle East 6,881 2,487 +176.7% 10,699 -35.7%
Asia & Pacific 396 373 +6.2% 6,702 -94.1%

Passenger load factor (%) 72.2 45.8 +26.4 pts 80.7 -8.5 pts
Domestic (UK & Spain) 77.4 62.2 +15.2 pts 83.9 -6.5 pts
Europe 70.4 55.1 +15.3 pts 79.4 -9.0 pts
North America 64.4 19.9 +44.5 pts 77.2 -12.8 pts
Latin America & Caribbean 78.3 51.0 +27.3 pts 84.8 -6.5 pts
Africa & Middle East 76.2 59.2 +17.0 pts 81.5 -5.3 pts
Asia & Pacific 56.3 33.0 +23.3 pts 82.7 -26.4 pts

Cargo tonne km (m) 990 854 +15.9% 1,393 -28.9%

22
 Quarter
Performance by airline
1Q 2022 1Q 2021 vLY 1Q 2019 v19

Passengers carried ('000s) 1,149 82 +1301.2% 2,196 -47.7%

Revenue passenger km (m) 2,275 124 +1734.7% 4,255 -46.5%
AIRLINE PERFORMANCE Available seat km (m) 4,006 883 +353.7% 5,804 -31.0%
Passenger load factor (%) 56.8 14.0 +42.8 pts 73.3 -16.5 pts
1Q 2022 traffic Cargo tonne km (m) 28 20 +40.0% 39 -28.2%

and capacity statistics

Passengers carried ('000s) 5,294 630 +740.3% 10,472 -49.4%
vLY and vs 2019 Revenue passenger km (m)
Available seat km (m)
17,903
25,157
2,480
6,466
+621.9%
+289.1%
34,875
43,833
-48.7%
-42.6%
Passenger load factor (%) 71.2 38.4 +32.8 pts 79.6 -8.4 pts
Cargo tonne km (m) 739 658 +12.3% 1,062 -30.4%

Passengers carried ('000s) 3,846 1,232 +212.2% 4,946 -22.2%

Revenue passenger km (m) 10,580 3,366 +214.3% 13,966 -24.2%
Available seat km (m) 13,909 6,159 +125.8% 16,425 -15.3%
Passenger load factor (%) 76.1 54.7 +21.4 pts 85.0 -8.9 pts
Cargo tonne km (m) 219 174 +25.9% 291 -24.7%

Passengers carried ('000s) 54 13 +315.4% 289 -81.3%

Revenue passenger km (m) 483 142 +240.1% 1,527 -68.4%
Available seat km (m) 581 192 +202.6% 1,918 -69.7%
Passenger load factor (%) 83.1 74.0 +9.1 pts 79.6 +3.5 pts
Cargo tonne km (m) 4 2 +100.0% 1 +300.0%

Passengers carried ('000s) 4,034 655 +515.9% 6,479 -37.7%

Revenue passenger km (m) 4,191 667 +528.3% 6,255 -33.0%
Available seat km (m) 5,427 1,096 +395.2% 7,443 -27.1%
Passenger load factor (%) 77.2 60.9 +16.3 pts 84.0 -6.8 pts
Cargo tonne km (m) n/a n/a n/a n/a n/a
Note: British Airways includes BA CityFlyer; Iberia includes Iberia Express; LEVEL includes Spain, France and Austria

23
 INTERNAL USE ONLY

DI S CLAIMER
Forward-looking statements:
Certain statements included in this announcement are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and
uncertainties because they relate to events and depend on circumstances that will occur in the future. Actual results could differ materially from those expressed or implied by such forward-looking statements.
Forward-looking statements often use words such as “expects”, “may”, “will”, “could”, “should”, “intends”, “plans”, “predicts”, “envisages” or “anticipates” or other words of similar meaning. They include, without
limitation, any and all projections relating to the results of operations and financial conditions of International Consolidated Airlines Group, S.A. and its subsidiary undertakings from time to time (the ‘Group’), as well
as plans and objectives for future operations, expected future revenues, financing plans, expected expenditure and divestments relating to the Group and discussions of the Group’s business plan. All forward-looking
statements in this announcement are based upon information known to the Group on the date of this announcement and speak as of the date of this announcement. Other than in accordance with its legal or
regulatory obligations, the Group does not undertake to update or revise any forward-looking statement to reflect any changes in events, conditions or circumstances on which any such statement is based.
Actual results may differ from those expressed or implied in the forward-looking statements in this announcement as a result of any number of known and unknown risks, uncertainties and other factors, including, but
not limited to, the effects of the COVID-19 pandemic and uncertainties about its impact and duration, many of which are difficult to predict and are generally beyond the control of the Group, and it is not reasonably
possible to itemise each item. Accordingly, readers of this announcement are cautioned against relying on forward-looking statements. Further information on the primary risks of the business and the Group’s risk
management process is set out in the Risk management and principal risk factors section in the Annual Report and Accounts 2021; this document is available on www.iairgroup.com. All forward-looking statements
made on or after the date of this announcement and attributable to IAG are expressly qualified in their entirety by the primary risks set out in that section. Many of these risks are, and will be, exacerbated by the
COVID-19 pandemic and any further disruption to the global airline industry and economic environment as a result.